Self-Employed Mortgage First Time Buyer

How does getting a mortgage as a self-employed First Time Buyer work? Is it difficult?

It’s the same process as if you were an employed home mover, and I’ll explain that process shortly. The only thing that differs are the income documents required and how lenders assess the income. 

If you’re employed it’s based on your salary and any overtime or bonuses. But for the self-employed there are lenders that use salary plus dividends, and some will use salary and a share of business profit. 

It’s not difficult to get a mortgage when you’re self-employed or a First Time Buyer at all, because there’s a wide variety of lenders to use. We’ll find the most suitable ones for your specific situation.

How many years do you have to be self-employed to get a mortgage as a First Time Buyer? 

Most lenders need to see two years of trading. I do have an option available that would only need one year, but two years of trading accounts or self-assessment documentation is the norm.

How much can I borrow for a mortgage if I’m a self-employed First Time Buyer?

It’s all done on income multiples. We’ll look at various things such as your income, whether you have any children, other dependents and commitments such as loans or credit cards.

Everyone’s circumstances and criteria are different. So we’d need to look at the whole picture to confirm how much you could borrow.

How is a mortgage calculated for a self-employed First Time Buyer in the UK?

We may be able to get them up to 5.5 times their income. This is dependent on your deposit and whether you have any children or commitments. We will need to look at the whole picture.

What documents do I need to prove my income as a self-employed First Time Buyer? 

If you’ve been self-employed for two years or more, we’ll need two years’ SA302s and tax year overviews. Your accountant will be able to provide those for you. 

If you’ve just got one year’s details then we just need those. Then we need the latest three months’ personal and business bank statements, along with ID in the form of a driving licence or a passport.